Hot-air balloonists favor change in law

A decades-old law that has helped drive up insurance costs for
hot-air balloonists in the Golden State, largely because it chased
away liability providers, is close to being removed from the books,
industry representatives said Monday.

Assembly Bill 2430 would eliminate a provision of state law from
the early 1960s that lumped balloonists in with commercial air
carriers, in turn requiring the balloonists to have the same sort
of liability insurance. The legislation by Assemblwoman Patricia
Wiggins, D-Santa Rosa, now awaits approval from Gov. Arnold
Schwarzenegger, who has not taken a position on the issue, state
officials said.

If signed into law, it would take effect immediately because the
bill has an "urgency" designation.

Cherise Manning, co-owner of A Grape Escape Balloon Adventure in
Temecula, said the legislation would give California-based
ballooning businesses insurance options similar to ones available
in every other state in the nation once the designation changes.
There are about 40 ballooning companies in the state, with most in
Temecula, Napa Valley, Sonoma Valley, Palm Springs and North San
Diego County.

"It's going to have a positive impact on rates," Manning
said.

Now, just one insurance carrier provides liability coverage to
ballooning companies in the state as a result of the existing and
cumbersome guidelines, said Carolann Rogers of Napa Valley Aloft
Inc. in Napa. Rogers said the bill would do three things if signed
into law: provide broader access to insurance, bring back more
underwriters to the state and lower premiums.

"(The existing law) was never intended to cover balloons," said
Rogers, who added that the liability issue drew more scrutiny after
the 9-11 attacks because rates skyrocketed.

Some local balloonists reported premium increases of 100 percent
after the attack.

The proposed bill also would shift industry oversight to local
government from the California Public Utilities Commission. The
industry would be regulated locally by the city or county that
issues a business permit to a ballooning company, local and state
officials said.

David Bradley, co-owner of California Dreamin' Balloon and
Biplane Adventures in Temecula, said he was in favor of the bill,
adding that it would help clean up a legislative mess.

"The (PUC) was not the (agency) that should have been regulating
hot-air ballooning," said Bradley, who has logged about 3,200 hours
of flight time.

The legislation would require any person providing
transportation by balloon for hire, recreation or entertainment to
have at least $1 million in liability insurance for personal
injury, wrongful death and property damage.

Additional liability coverage of $100,000 would be required for
each passenger for any hot-air balloon that carries more than 10
passengers. Existing law requires an "aircraft" to maintain
$100,000 per passenger in passenger liability insurance, $100,000
in nonpassenger liability for a minimum of three nonpassengers and
a $100,000 minimum in third-party damage.

Hot-air balloons typically carry between six and 16 people per
trip, Rogers said.